Bitcoin and Ether Options Volatility, Skew, Flows, and Dealer Gamma

Summary

This market recap reviews a historical snapshot of Bitcoin and Ether options. It discusses realized and implied volatility, term structure, skew, option flows, and dealer gamma positioning. The commentary links changes in short-dated volatility and skew to a Bitcoin price breakout and describes call spreads, rolling activity across expiries, and differences in positioning between the two assets. It also outlines a relative-value idea involving long-dated Ether calls against Bitcoin calls, using far out-of-the-money options to limit sensitivity to smaller moves.

The evidence consists of observed market levels and reported flows, alongside the author’s interpretation of how those conditions may affect volatility selling and relative-value trades. It is a dated commentary rather than a systematic study: it supplies no methodology for measuring the flows, backtest, or subsequent trade outcomes. Its targets and trade views depend on the market context at publication, and the proposed options exposures carry volatility, expiry, and relative-price risks.

Key ideas

• The recap separates volatility, term structure, skew, option flows, and dealer gamma as dimensions of crypto options positioning.
• It associates a Bitcoin breakout with higher implied volatility and short-dated changes in skew and gamma.
• Reported activity includes call spreads, expiry rolls, profit taking, and differences between Bitcoin and Ether flows.
• A proposed relative-value expression uses long-dated Ether calls against Bitcoin calls, with far out-of-the-money strikes.
• The commentary is a historical market snapshot without a systematic method or reported trade outcomes.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.